How high-involvement HRM practices motivate knowledge sharing and innovation: the role of market turbulence

Abstract

PurposeThe purpose of this paper is to examine the impact of high-involvement human resource management (HRM) practices on innovation capabilities via the mediating role of knowledge sharing (KS) behaviors. This paper also investigates the potential moderating role of market turbulence in fostering the influence of KS behaviors on two forms of innovation capability, namely exploitative and exploratory innovation.Design/methodology/approachAnalysis of moment structures and structural equation modeling are applied to examine the correlation among the latent constructs based on the survey data collected from 125 manufacturing and service firms.FindingsThe findings of this study support the mediating role of KS behaviors in the relationship between high-involvement HRM practices and aspects of innovation capability. It highlights the important role of market turbulence in strengthening the influence of KS on exploitative and exploratory innovation.Research limitations/implicationsFuture research should investigate the impact of high-involvement HRM practices on innovation capability under the moderating effects of organizational variables, such as perceived organizational support, to bring better understanding on a new mechanism to pursuit innovation.Originality/valueThe paper significantly contributes to increasing knowledge and insights into the correlation between high-involvement HRM practices and specific forms of innovation. The understanding on the mediating role of KS behaviors and the moderating role of market turbulence contribute to advancing the body of knowledge of HRM and innovation theory.